GamCrowd gets personal with digital identity
GamCrowd gets personal with digital identity
This week’s article talks to panel participants at the upcoming GamCrowd TechWeek in London on June 14 about the issues related to regtech
Where regtech comes into its own is in the deployment of technologies that handle and process the huge amount of data consumers generate in their day-to-day behaviour, actions and transactions online and the translation of that into enabling procedures for companies dealing with regulatory and rules-based systems.
It is an offshoot of fintech and there are clear user cases in financial services for technology-led solutions that can deal with issues around KYC (know your customer) and AML (anti-money laundering), digital identity generally and for dealing with potential fraud.
This is also the case, of course, with the gambling sector and where a similar list of pertinent issues apply and where digital-identity solutions have been in use for some years. As Jamie Miles, head of KYC at digital identity provider Onfido, says the benefits of utilising technology in these areas and what they bring in terms of efficiency savings and the standardisation of data are clear.
“With technology automating up to 80 percent of the KYC process, internal resources can be reassigned to the 20 percent of difficult cases that need human expertise,” he says. With different data sets from differing territories being very heterogeneous, it means that technology can be brought to bear that can improve data capture and enable the datasets to be better populated for increased future use.
“Using something like machine learning for analysis means that processes are always improving over time,” he adds. “All of this building towards helping businesses innovate.”
Zac Cohen, general manager at global ID-verification provider Trulioo, says that regtech has enabled companies to map and analyse huge amounts of data, a process that previously was overwhelming. Regtech, he says, “gives compliance leaders critical tools to identify and protect against these risks in ways previously unavailable” and as such the technology can drive “unprecedented value within any compliance strategy by streamlining and automating oversight at big-data scale.”
The degree to which an almost unfathomable amount of data has been digitised within the past decade or more has generated its own pressures for the world’s regulators. What is focusing minds in the regtech sector is the imminent arrival of the EU’s General Data Protection Regulation (GDPR) and what that means for the privacy landscape generally.
Guy Cohen, the policy lead at leading regtech and digital identity services provider Privitar, points out that privacy is driving the conversation forward in various areas of the economy. “Privacy has been a high-profile issue in healthcare for some time, and the data being used is highly personal and sensitive,” he points out. “For telco there have been notable privacy issues raised in a number of instances, and in financial services there are clear data-protection risks which banks have been managing for some time.”
With the concerns among operators in a range of sectors being matched by obvious consumer worries over digital privacy, it is easy to see why the launch date for the EU’s adoption of GDPR in May next year has taken on a central importance.
“In the short and medium term, the GDPR will have a massive impact as it will push all organisations to meet a set of minimum standards,” says Cohen from Privitar. “In the longer term, though, it may be seen as part of a general adjustment to bring privacy protection into digital innovation.”
Further advances in this area are likely to come via potential blockchain applications. One such business which is exploring ideas in this area – and has the official stamp of being a participant in the UK’s Financial Conduct Authority (FCA) regulatory sandbox experiment – is Tradle, which it says is hoping to build a global trust network based on a blockchain KYC process.
Founder and chief executive Gene Vayngrib points out that digital regulation has the potential to create more stability and trust in the system than paper regulation could ever manage. Moreover, he sees the potential for blockchain to enable consumers to regain oversight and ultimately control of their own digital identity and their online privacy.
“We are basically resolving some of the tensions (over data and privacy) that have emerged recently,” he says. “How do we do GDPR and comply with that, while at the same time fulfilling all sorts of regulatory requirements, some of them effectively spying on your customers and reporting them to the regulators without them knowing about that? We can answer something like 80 percent of these concerns.”
Yet in moving to implement blockchain in the digital identity and privacy realm, Vayngrib readily admits that he is calling into question the very notion of big data and its application in the real world.
Totally Gaming says: Among the current leaders in the field of digital identity there is an acknowledgement that they are a part of an industry which is still in its formative stages with change being driven as much by the regulators as by the technology. Representatives from Trulioo, Onfido and Privitar will be speaking at the GamCrowd TechWeek taking place at the Hippodrome Casino in London on Wednesday 14 June.